Do Inaccuracies Impact Your Credit Score? – Episode #53
Are credit report inaccuracies something to worry about? The statistics say yes. 79% have errors but only 25% have score impacting errors according to Public Interest Research Group [PIRG]. Here’s the thing. It’s quicker to have errors removed because credit bureaus have 30 days to respond to disputes [actually, with back and forth it can take 60 days]. In contrast, it can take a long time to get a bad behavioral mark removed — it will stay on your credit report for 7 years and bankruptcies last for 10 years.
I’ve come across stories of people who have increased their scores by huge numbers in a short amount of time, not through tricks but through the removal of inaccuracies.
- One story had a person increase his FICO credit score by 183 points in one update on Score Watch. All through removing an inaccuracy.
- Another had someone who increased his FICO credit score by 111 points in 45 days.
You won’t see this kind of dramatic score change through behavioral change. This is why you want to get your credit report and if needed, start the credit report dispute process. Our sample credit dispute letter can be found in our resources section.
Manage Your FICO Credit Score for a Refinance – Episode #52
This episode discusses:
1. Why most of us may need to refinance
2. How to handle your credit score in the short time you have before you refinance
3. Tips for getting your score higher such as keeping your credit card utilization low and paying off your cards 2x per month or even more!
Many of us are needing to refinance as we enter the unraveling of our 5-year interest only adjustable rate mortgages. But we all know that times have changed and we need to be realistic to the fact that times have changed. Many of us are living in houses that are worth less than we paid for them, and that the credit markets have tightened up, and that now all the pieces matter — your income, your FICO credit scores, your loan/value.
This video addresses the credit score piece. While a 680 might have been enough to get approval without income back in 2005, it’s not enough now. You will need a 760 or above to get the best rates possible.
I’ve increased my FICO score by 30 points in the past 7 months, well really most of this was in the past 4 months. How did I do this? Not through debating inaccuracies. Not through any shady practices. I’ve increased my FICO credit score through watching my balances and paying on time – scratch that – paying ahead of time. By paying my bills two times per month or even every week, I’ve lowered my credit utilization ratio and that has increased my FICO credit score.
